CHICAGO, Oct. 6, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Autoliv, Inc. (NYSE:ALV-Free Report), General Motors Company (NYSE:GM-Free Report), Ford Motor Co. (NYSE:F-Free Report) and TRW Automotive Holdings Corp. (NYSE:TRW-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
WILL AUTOLIV (ALV) GAIN FROM CHANGE IN OPERATING STRUCTURE?
On Sep 30, 2014, we issued an updated research report on Autoliv, Inc. (NYSE:ALV-Free Report). The company reported positive earnings surprise in two of the trailing four quarters, with an average beat of 1.5%.
Autoliv reported second-quarter 2014 adjusted earnings of $1.45 per share, missing the Zacks Consensus Estimate of $1.54. Earnings decreased 2% from $1.48 per share reported in the second quarter of 2013.
Consolidated revenues rose 8.4% year over year to $2.38 billion, marginally beating the Zacks Consensus Estimate of $2.33 billion. The improvement was driven by higher-than-expected vehicle production in North America, Europe, Japan and South Korea, partially offset by a decline in light vehicle production in Brazil. In addition, there was higher demand from China. Demand for active safety products also increased.
From Jan 1, 2015, Autoliv will change its reportable segments to Passive Safety and Electronics. The change in operating structure is expected to facilitate growth and help the company to effectively manage operations. It should also facilitate the implementation of Autoliv's business strategies.
However, there are concerns stemming from stiff competition and high dependence on a few customers. General Motors Company (NYSE:GM-Free Report) is the biggest customer of Autoliv, followed by Ford Motor Co. (NYSE:F-Free Report) and Renault-Nissan. The top 5 customers represent about 54% of sales and the top 10 represent 83% of sales. Thus, loss of any key customer could considerably affect the company's earnings.
Further, while Autoliv occupies a leading position in the market, it faces stiff competition in passive safety products from Takata Corporation and TRW Automotive Holdings Corp. (NYSE:TRW-Free Report). Moreover, low vehicle production in some regions could weigh on Autoliv's performance.
For 2014, the company raised the organic sales growth guidance to 6% from 5%. Autoliv also projects operating margin of around 9%, excluding capacity alignments and antitrust investigation costs.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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